Which of the Following Taxes Is the Most Efficient Tax

question 20

Multiple Choice

Which of the following taxes is the most efficient tax?

• A) a consumption tax
• B) a lump-sum tax
• C) a progressive income tax
• D) a proportional income tax

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Definitions:

Conditional Surety

A surety agreement where the guarantor's obligations are triggered by the occurrence of specific conditions.

Absolute Surety

A guarantee without conditions or limitations, ensuring complete assurance or certainty.

Subrogee

A party that assumes the legal rights of another (the subrogor) to make claims or enforce rights, typically in insurance cases.

Financing Statement

A document filed to give public notice that a lender has a security interest in a borrower's personal property.